Core Viewpoint - The company, HLA (海澜之家), has initiated plans for a Hong Kong listing to enhance its global strategy and accelerate overseas business development [2][3]. Group 1: Overseas Expansion - HLA's overseas revenue has significantly increased from 6.1684 million in 2017 to 355 million in 2024, with a 27.42% year-on-year growth in the first half of 2025 [3]. - The company has expanded its overseas presence, opening its first store in Malaysia in 2017 and subsequently entering markets like Laos and the Philippines [8][9]. - As of the first half of 2025, HLA operates 111 overseas stores, although overseas revenue only accounted for approximately 1.83% of total revenue [11][12]. Group 2: Financial Performance - In the first half of 2025, HLA's revenue grew by 1.73% to 11.566 billion, but net profit decreased by 3.42% to 1.580 billion, indicating challenges in performance [4]. - The company's revenue from the main brand, HLA, contributed approximately 75% of total revenue in the first half of 2025 [6]. - Historical revenue figures show fluctuations, with total revenues of 17.959 billion, 20.188 billion, 18.562 billion, 21.528 billion, and 20.957 billion from 2020 to 2024, reflecting a volatile growth pattern [4]. Group 3: Strategic Initiatives - HLA is transitioning from a men's clothing brand to a family-oriented brand, introducing multiple brands and categories since 2021 [3]. - The company has invested 248 million in acquiring a 51% stake in a sports brand management company to enhance its sports product offerings [6]. - HLA has partnered with JD.com to create a new retail format, "JD Outlet," to tap into the high-value consumer market [7].

Core Viewpoint - The report from CICC indicates an upward revision of the adjusted net profit forecast for Pop Mart (09992) for 2025 and 2026 by 13% and 15% to 11 billion and 14.1 billion yuan respectively, with a target price increase of 12% to 370 HKD, suggesting a 17% upside potential [1][2]. Group 1: Financial Performance - In the first half of 2025, the adjusted net profit exceeded expectations, with revenue reaching 13.88 billion yuan, a year-on-year increase of 204%, and profit of 4.68 billion yuan, up 386%, surpassing previous forecasts [2]. - The adjusted net profit for 1H25 was 4.71 billion yuan, reflecting a 363% increase, slightly above CICC's expectations [2]. Group 2: Regional Growth - Revenue by region showed significant growth: China (82.8 billion yuan, +135%), Asia-Pacific (28.5 billion yuan, +258%), Americas (22.6 billion yuan, +1142%), and Europe & others (4.8 billion yuan, +729%) [3]. - The number of stores increased across regions, with notable expansions in the Americas and Europe, and online channels also saw enhanced performance [3]. Group 3: IP and Product Categories - The company has a strong IP matrix with five major IPs generating over 1 billion yuan each, and the top IP, THE MONSTERS, achieved a revenue increase of 668% to 4.81 billion yuan [4]. - Revenue from product categories showed substantial growth, with plush toys increasing by 1276% and figures by 95%, while the overall revenue from plush toys reached 6.14 billion yuan, accounting for 44.2% of total revenue [4]. Group 4: Profitability and Future Outlook - The gross margin for 1H25 was 70.3%, up 6.3 percentage points year-on-year, driven by increased overseas sales and improved supply chain negotiation capabilities [5]. - The adjusted net profit margin reached 33.9%, reflecting an increase of 11.6 percentage points year-on-year, indicating strong operational leverage [5]. - The company is viewed as having significant long-term growth potential, with opportunities to expand beyond a single IP and into various business segments [5].